A Korean man was arrested and charged with estafa after he exchanged P160,000 worth of a demonetized currency in Binondo, Manila on Wednesday.

Kim Jae Song went to the moneychanger stall of businessman Johnny Hao, 71, at the basement of 999 Mall at around 11 a.m. and had his 10,000 kina (Papua New Guinea currency) changed into pesos, which is equivalent to P160,120.87.

Kim introduced himself as Rey Lee during the transaction and hurriedly left.

However, Hao’s nephew, Bryon Pedelos, later learned that the Papua New Guinea currency that the suspect swapped was no longer accepted as legal tender after he tried to sell it to other moneychangers.

They learned that the currency had been demonetized in 2013.

Two hours later, Kim went back to Hao’s shop and was trying to exchange his 50,000 kina to pesos.

The shop’s security guards apprehended the suspect and turned him over to the police.

During investigation, Kim failed to explain where he kept the money he initially swapped, according to Chief Inspector Joey de Ocampo, Manila Police District general assignment and investigation chief.

He refused to answer questions, forcing the police to coordinate with the Korean embassy, which said Kim is considered an undesirable alien and had been staying in the country without proper papers.

De Ocampo said they are also asking the Bureau of Immigration to help determine when Kim entered the country.

President Duterte is seeking common ground with Beijing on the planned joint exploration in Philippine waters and has not abandoned the 2016 arbitral court ruling favoring the Philippine position on the South China Sea, Malacañang told Vice President Leni Robredo yesterday.

Malacañang on Saturday slammed Vice President Leni Robredo for criticizing President Rodrigo Duterte’s openness to ignore the Philippines’ legal victory in the South China Sea and seal an energy deal with Beijing, saying she needs new advisers who can comprehend the maritime row.

The US Navy said that one of its destroyers had sailed close to the Chinese-controlled Paracel Islands in the South China Sea on Friday, asserting international freedom of navigation rights in the contested waters.

Under Philippine law, President Rodrigo Duterte does not have the authority to "set aside" the July 2016 ruling issued by the Permanent Court of Arbitration, Supreme Court Senior Associate Antonio Carpio said.